Diversification Categories in Investment Real Estate |
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| Authors: | David Hartzell John Hekman Mike Miles |
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| Affiliation: | Department of Finance, The University of Texas at Austin, Austin, Texas 78712.;Department of Finance, The University of North Carolina-Chapel Hill, Chapel Hill, North Carolina 27514. |
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| Abstract: | This paper continues previous work evaluating the benefits of diversification and analyzes the various dimensions within the commercial real estate opportunity set. The database is large and extends through the 1982 downturn in property values. Due to the low levels of systematic risk, current distinctions by region and property type make little sense in a world of costly diversification. More exacting categories combining property type, SMSA growth rate and lease maturity offer promise for more efficient diversification within the real estate portfolio. |
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